The Nigerian Communications Commission (NCC), has granted approval to Mobile Network Operators (MNOs) to disconnect USSD codes of nine financial institutions that have failed to settle outstanding invoices.
This decision, announced in a statement issued by NCC’s Director of Public Affairs, Felix Muoka, affects nine financial institutions, including Fidelity Bank Plc, First City Monument Bank, and Zenith Bank Plc, which have not complied with the directives of the Central Bank of Nigeria (CBN) and the NCC on the payment of the outstanding liabilities.
USSD, commonly known as ‘bank transfers’, is done through short codes on mobile phones.
The support is provided by the telcos.
The affected financial institutions have been given until January 27, 2025, to settle their outstanding invoices. Failure to comply will result in the disconnection of their USSD codes, which may be reassigned to other applicants.
The NCC, in the announcement, also informed consumers that they may be unable to access the USSD platforms of the affected financial institutions from January 27, 2025.
According to the public notice, the decision is part of the NCC’s efforts to ensure that financial institutions meet their obligations to MNOs and comply with regulatory requirements.
The approval might be part of decisions to resolve the logjam over the issue of banks’ multi billion naira USSD debt to telcos, which has lingered since 2020, rising from below N40 billion to N57 billion by the end of 2021 and N80 billion in 2022.
The telcos claim that the debt has risen above N250 billion and accused the banks of not complying with the agreed repayment plan. This is at a time when the telcos are groaning over high operating costs and non commensurate revenue.
“The Commission is committed to protecting consumers and promoting fair competition in the telecommunications industry, ” the statement said.
